All Forum Posts by: Visal Nip

I just Googled "California Landlord Tenant Law"

Read that PDF. Pretty covers your responsibilities as a Landlord and their responsibilities as your tenant.

Good Luck!

I had to do an eviction myself, and the process was not too bad.

My process server could not serve one of the tenants and attempted on many occasions.

It was documented on the proof of serve and I was still able to file the court papers for default. 

This was in California. Good luck. Evictions are not fun, even if someone else is personally handling the situation.

Thank you Chris for documenting this rental rehab. I will probably be doing some minor rehabs as well once my tenants move out at the end of Feb. 

I have already learned a lot already from your post.

You should get on podcast. Would be excited to listen to your story.

Sorry forgot to mention, I am purchasing with 25% down conventional financing.

I believe the duplex is what makes this rental property work. I cross referenced rental prices with craigslist and on rentometer and the prices for SFR needs to be "distress low" in order to at least make the 1% rule.

Victorville is a low income area, so a 2x1 averages around $700 while a 3x1 gets about $800. Not much of a difference in rent but a huge difference if you were to purchase a SFR. But luckily, I found a duplex with these exact figures for the price of a SFR.

I am currently in contract on a duplex. There are renters and the market in Victorville is definitely low income. Cash flow wise, the numbers do work, what I cannot predict are the tenant class/characteristics. I'll definitely keep you posted if things work out.

My realtor said the security deposit will be deducted from the purchase price. Not to worry, I'm not depending on him much, which is why I am here.

I'll be sure to write everyone a letter of want should be done before closing.

@Sharon Tzib I'll be sure to have tenant and owner sign an Estoppel agreement.

If anyone would like to critique this deal, here are the major infos I know.

Price: $117000,

Down:20%,

Mortgage : about $600/mo

2013 Tax: $530/yr,

Insurance: $980/yr,

Trash: $840yr, Water: $1200/yr.

Unit 1: 2bed/1bath w/ carport for $700

Unit 2: 3bed/1bath w/ carport for $800

Each unit has ceramic tile except carpet in bedrooms.

I've checked rentfaxpro & rentometer and the going rate for two bed is between 650-750 while three bedrooms are between 800-950 conservatively.

Let me know what you guys think and thank you everyone for helping out. Deal seems good, trying to not fall in love with it and be blind sided because I want to close so badly. Trying to remain composed and do my best with due diligence.

Hello everyone. Back again with another possible deal in Southern California.

I'm in contract with a Duplex. Both units have tenants.

Purchase Price: $117k.

Down: 20%

I checked out the units and their in good condition, besides the minor cosmetic (paint, possible tile or laminate in the bedrooms). I will have the tenants sign a new lease agreement with me.

Still waiting to do inspection.

My problem is doing the financial due diligence. The owner only accepts cash for rent. I asked for bank statements for deposit verification and her tax return. I also asked for cash receipts she should be giving to the tenants for rent paid. Well, I came to find out she does not deposit her cash rent into her bank, so no bank statements. Haven't heard anything regarding the requested tax return or cash receipts.

Anyway other way for me to verify that the units are bringing the rents the owner stated?

Also, is it normal for the owner to pay me the security deposit she accepted from the tenants? So I can hold the deposit for when the tenants leave & for repairs. I was told it would be deducted from the purchase purchase. Is that wrong to do?

Kind Regards,

-Vi

@Brian Gibbons Brilliant! Thanks for the ideas. Will definitely take all of those options into consideration.